In its self-evaluation report to the Sunset Commission, released over the weekend, the port said it would be "a serious detriment to the local, state and national economies" if the Port Authority didn't operate terminals and make trade deals with foreign ports.

The Sunset review process helps determine whether state agencies are operating effectively and openly, and sets recurring deadlines by which they must be reauthorized by the state Legislature or abolished.

The Port Authority is an autonomous governmental entity created by the state Legislature in 1927, and does not have a recurring Sunset date.

But lawmakers this year ordered a special review of the Port Authority after critics including two port commissioners raised questions about the CEO's use of the port's tour boat, its chairman's relations with a port contractor, its compliance with open meetings requirements and its expenses.

The offices of the Harris County auditor, county attorney and district attorney also are investigating the various complaints.

On the record

Officials have begun recording open Port Commission meetings, but said in the report it must still discuss some matters privately.

"There are occasions when the governing body of a navigation district should have the ability to meet in closed session to discuss competitive business matters, which is an authority granted to counties and certain special purpose districts," the report said. "The inability to have proprietary discussions could lead to loss of competitiveness."

Officials said they know they must be accountable to taxpayers who fund its expansion projects. Fees from users fund the port's operations.

"The confidence of local voters is particularly significant because the Port Authority must seek their approval of general obligation ad valorem tax bonds," the report said. "There always remain opportunities to make improvements and address concerns raised by stakeholders and others."

Policies under review

The seven-member Port Commission and its staff recently formed task forces to examine and improve the way the Port Authority functions, it told the Sunset Commission.

Much of the criticism of the port has focused on how it spends on promotional activities, including its tour boat, the M/V Sam Houston. CEO Alec Dreyer, in particular, drew fire after he hosted a $2,088 party for a friend aboard the vessel. His friend ultimately picked up that catering tab.

The Texas Water Code allows the Port Authority to use up to 5 percent of its gross revenue for promotion and development, and last year it spent 2.6 percent, $4.8 million, according to the report.

"In light of recent public scrutiny of expenditures, the Port Authority is reviewing its policies for funding certain activities" through its promotion and development fund, the self evaluation said.

The Port Authority also noted that it is seeking a cruise line to call at its Bayport Cruise Terminal, which was completed two years ago, has cost $108.4 million to date and has yet to draw regularly scheduled cruises.